New Jersey Lawmakers Propose Energy Surcharge, Tax Relief Amid Soaring Electricity Costs

New Jersey is grappling with soaring electricity costs that have become a major issue ahead of the gubernatorial race. Assemblywoman Andrea Katz is proposing legislation to impose a surcharge on data centers that consume high amounts of electricity during peak hours, aiming to incentivize efficiency and fund grid modernization. Governor Phil Murphy conditionally vetoed a related bill requiring data centers to report their utility use, suggesting a delayed timeline and further studies on their impact to avoid burdening other ratepayers. Meanwhile, Senators Latham Tiver and Joe Pennacchio introduced a bill to suspend the sales and use tax on electric bills, aiming to provide immediate financial relief to families amid rising energy costs. The energy challenges are compounded by setbacks in offshore wind projects, partly due to federal actions under President Donald Trump, which have slowed New Jersey's progress toward its clean energy goals and contributed to higher electricity prices. Both major gubernatorial candidates agree that addressing electricity prices is critical, with proposals ranging from emergency declarations to withdrawing from regional greenhouse gas initiatives.